Subscribe Register Login

Friday, April 18, 2014, 12:37 a.m.
Top Picks - Capture Arkansas

Wal-Mart's Massmart sees slower growth as credit debt climbs

By Bloomberg News

This article was published February 28, 2013 at 8:00 a.m.

— Massmart Holdings Ltd., the African food and general goods retailer controlled by Wal-Mart Stores Inc., has seen a “large” increase in the use of credit cards that may weigh on sales, Chief Executive Officer Grant Pattison said.

“The carry cost of debt is eating into disposable income,” Pattison said in a phone interview from Johannesburg on Thursday. “We expect to see customers paying back debt, rather than extending further debt” in 2013.

Massmart is among several South African retailers to warn that rising credit payments toward the end of last year may lead to a prolonged slump in consumer spending.

Truworths International Ltd., South Africa’s biggest clothing retailer by market value, warned of “escalating levels of debt” earlier this month, while Shoprite Holdings Ltd. said fuel price increases and labor unrest will hold back spending in the first half of 2013.

Massmart profit fell 23 percent to $78.2 million in the six months through Dec. 23 because of weaker consumer confidence and the costs of selling control to Wal-Mart, the Johannesburg-based company said in a statement.

Comments on: Wal-Mart's Massmart sees slower growth as credit debt climbs

To report abuse or misuse of this area please hit the "Suggest Removal" link in the comment to alert our online managers. Read our Terms of Use policy.

Subscribe Register Login

You must login to make comments.

TOP JOBS

  • Service advisor - moix rv in conway

    is seeking an outgoing, people orientated individual to joi...
    CONWAY, AR

  • Teacher

    Riverview School District is accepting applications for the ...
    SEARCY, AR

  • Drafting instructor

    Arkansas Tech University — Career Center invites application...
    OZARK, AR

  • Detention officers

    detention officers needed immediately!! exciting new career ...
    HOT SPRINGS NATIONAL PARK, AR

  • Inside sales

    Asst. Yard Mgr. - Whit Davis Lumber Co in Jacksonville. Must...
    JACKSONVILLE, AR

Search 743 jobs >

Top Picks - Capture Arkansas
Arkansas Online